In a startling revelation that has sent shockwaves through Australia's energy sector, Industry Minister Ed Husic has lifted the lid on what he describes as a deeply unfair practice costing Australian manufacturers billions. Japanese energy giants are purchasing Australian liquefied natural gas (LNG) at bargain prices, only to flip it for enormous profits on international markets while local businesses struggle to survive.
The Great Gas Divide
Speaking with palpable frustration, Minister Husic detailed how these international companies are exploiting Australia's own natural resources. "We are seeing Australian gas being bought cheap, then on-sold for significant profit," he stated, highlighting the bitter irony that the nation's abundant gas reserves are providing little relief to its domestic industry.
The situation has become so dire that Australian manufacturers are being forced to pay substantially more for gas than their international competitors. This price disparity is creating an unlevel playing field that threatens the viability of local production and could lead to further job losses in the manufacturing sector.
Manufacturers on the Brink
The energy cost crisis has pushed numerous Australian manufacturers to breaking point. With gas prices remaining stubbornly high domestically despite Australia being one of the world's largest LNG exporters, businesses face an impossible choice: absorb unsustainable costs or cease operations entirely.
This comes at a time when the government is trying to bolster domestic manufacturing capability as part of its broader economic strategy. The current gas pricing structure fundamentally undermines these efforts, creating what Husic calls an "unacceptable" situation that demands immediate intervention.
Government Pressure Mounts
The Australian government is now turning up the heat on gas producers, demanding they explain why domestic prices remain elevated while international buyers profit from cheap Australian gas. Minister Husic has made it clear that voluntary measures have failed and stronger action may be necessary to protect national interests.
"The patience of Australian manufacturers has worn thin," Husic warned, signalling that the government's approach may shift from persuasion to enforcement if companies don't address the pricing imbalance voluntarily.
This developing situation represents a critical test for Australia's energy policy and its relationship with major trading partners, with billions of dollars and thousands of jobs hanging in the balance.
